Below is a listing with all citations on how State and the Federal government subsidizes offhsore Oil rigs via setting up a regime that allows the big oil compnaies to create them, milk the profits out of them while significantly under capitalizing any dismantling and clean up, while instead reselling the rig near the end of its useful life to minor companies who will pump every last drop, dsitribute profits and then go bankrupt as the Rig comes to end of life.
@T. A. Gardner will proclaim the tax payers picking up this tab, including massive costs when the well below blows and spews oil into the sea, is not a subsidy. That Big OIl taking the profits while bribing gov't so they can avoid the decommissioning cost and thus forcing that on to the tax payer is not a subsidy, in his view.
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Taxpayers face multi-billion dollar liabilities for the decommissioning of aging offshore oil and gas infrastructure due to structural regulatory loopholes and generous tax codes. Globally, the total cost to dismantle and plug thousands of deep-sea oil rigs is estimated at over
$210 billion to $300 billion, a massive portion of which is actively shifted onto the public. [
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The primary mechanics used to channel public funds into decommissioning projects include specific financial structures and policy gaps.
1. Direct Decommissioning Tax Relief
Many jurisdictions explicitly allow oil and gas corporations to claw back public funds through specialized tax codes once a rig stops producing. [
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- Tax Repayments: Companies are entitled to write off asset-removal costs against previous years’ earnings, forcing governments to issue direct refunds. [1, 2, 3]